Location: Racine-Mount Pleasant, WI | Metro: Milwaukee-Waukesha, WI MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,150 |
| 1 Bedroom | $1,280 |
| 2 Bedrooms | $1,590 |
| 3 Bedrooms | $2,030 |
| 4 Bedrooms | $2,460 |
| 5 Bedrooms | $2,854 |
| 6 Bedrooms | $3,196 |
| 7 Bedrooms | $3,452 |
| 8 Bedrooms | $3,625 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,030 | $357,037 | 0.57% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 53108 reveals a unique blend of yield and stability that does not strictly fit into either a high-yield/low-stability flip-style market or a steady-cashflow zone. Instead, it presents an opportunity that lies somewhere in between.
Firstly, examining the yield potential, the Fair Market Rent (FMR) for ZIP 53108 is set at $1030 for fiscal year 2024. This figure contrasts with the market rent of $1,438, indicating a significant upside if landlords can secure market rents. However, the median home value stands at $389,142, which is considerably higher than the median income of $86,679. This suggests that while there is potential for high rental yields, the cost of entry into the market is relatively steep compared to the average income level, potentially limiting the pool of tenants who can afford market rates.
Moving on to stability, the data shows that only 7.5% of residents are renters, which points to a less stable tenant base. The lack of available data on days on market (DOM) further complicates the assessment of stability. Typically, a lower percentage of renters and incomplete data would suggest a less stable market. However, the median income figure of $86,679 provides a counterbalance, indicating that tenants who do reside in this area have a relatively strong financial standing, which could contribute to timely rent payments and reduced vacancy periods.
In summary, ZIP 53108 offers a moderate level of yield potential due to the disparity between FMR and market rent, but the stability is somewhat compromised by the low percentage of renters and the absence of DOM data. The higher median income offers some reassurance regarding tenant reliability, making this a zone that requires careful consideration of both the financial upside and the risks associated with tenant turnover and market dynamics.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.